Member Info for EG777

You can't sell your JHI Shares. They're a private company.

You are only going to realise any value on them if a capital event occurs. (i.e they IPO, or get bought out).

Sam said at the AGM that the banks were very strict about contingency so they needed to ensure that funds were in place to cover things like decommissioning, unforeseen events etc.

He did hint towards it being a fairly large fund raise. Probably didn’t expect it to be as large as it is. But the banks might have named their price and if that’s the case that would mean negotiations are well progressed and that can only be a good thing. The market certainly seems to think so anyway.

How are the RKH shorts treating you M-D?

I should say that I have no inside information whatsoever.

But when we look at the facts:

- Sam announced fund raise is imminent

- we had a shock announcement that a legal case that we felt was almost guaranteed was annulled (albeit with insurance to cover about 40% of the loss)

- there hasn’t been a great deal of significant positive news since

Shenandoah doing well is obviously a good outcome for RKH. But does this justify the rise we’ve seen in light of the above over the past few weeks?

My hunch, (and it is very much just a hunch). Is that there is more to this rise than us mere PI’s know, and we will see real fireworks when it comes to light.

Take my opinion with a gallon of salt. But I think the Falklands Dream might at long last be here.

I wonder if there’s a clawback clause on the insurance.

I.e if arbitration is submitted, and then won. RKH get the 65m tranche 2 payment. Would the insurers be able to clawback the 31m or would that be in addition to the 65m for RKH.

Sam seemed to think otherwise. This was a question raised by a gentleman at the AGM during the Q&A. Sam's response was "never say never", but there are so many poison pills (at the moment it's very difficult to imagine anyone taking RKH out, even post-FID. The most prominent poison pills being the loans, and FIG tax situation. (I may be paraphrasing to an extent as I didn't note it down word for word, but was definitely words to that effect).

Godders is buying lol

No banks name was mentioned in the AGM, Sam specifically said they were unable to mention but said that the bank was a household name that everyone there would have heard of, with significant experience in the O&G Sector. Not sure if SMBC would fit that bill?

They didn't speak too much about the reason for the annulment, other than to say that everyone involved found the result extremely surprising or words to that effect.

Sam commented about whether or not everything had been disclosed to the insurers. He said that they saw absolutely everything, and were fully aware of all of the facts, and aware of everyone who had been appointed by both RKH and Italy (obviously a thinly veiled reference to them being aware of Poncet).

He said they now have 3 options on what they can do regarding the case:

1) Do nothing and walk away (very unlikely to happen for obvious reasons).

2) Write a letter to the panel requesting them to reconsider the decision. (was difficult to hear at this point - but I think Sam said the solicitors were going to do this but didn't think it was likely to work).

3) Resubmit the arbitration from scratch. If I remember rightly Sam said the terms would be the same i.e any payout would be paid to the funder and RKH would receive the tranche 2 payout.

Violindog - I was in the same boat on the last open offer.

I’m with HL, so I’m not sure if other brokers are the same. But you need to ensure the uninvested cash in your ISA is enough to cover the cost of the open offer units. If your ISA is fully subscribed and invested you have 2 options:

1) sell a different holding to free up cash

2) wait until the record date/time has passed, then sell enough RKH shares to free up cash for the open offer units and subscribe

One way or the other*

Bigred - pretty much! There was very little new information aside from the insurance updates.

One way the other there will be an RNS next week.

Either insurance has been paid, or disputed.

Nothing Sam said in the AGM regarding funding was news.

Basically repeated what was in the final results press release. Either all the sellers didn’t read that, or the AGM comments have been overblown.

Sam also mentioned if they do a raise they’d aim to do another open offer with warrants for existing shareholders.

Quite shocked by the drop to be honest. It was obvious we needed more funds.

Some other points I haven’t seen mentioned:

- insurance claim has been submitted, deadline for their response is next week. Both the brokers and insurance lawyers think they will pay.

- there is the option to resubmit the OM claim with the funder, no firm decision yet although it’s very unlikely it will be walked away from

- the lending bank couldn’t be named but is a household name we’d all of heard of. Feedback so far from all involved in raising the capital has been very positive

- Sam met with FIG this week who continue to be very supportive, so hopefully resolution on tax royalty can be achieved soon

- they had them posh biscuits you get at hotel which are individually packaged, so things must be looking up

Do they have parking there? I'm not staying the night before but travelling quite a distance early on to get there in time - so hoping they have a car park.

"I did a recce of the venue yesterday. I was impressed that when RKH said they were minimising costs in advance of FID, they meant it !"

Is it not in the same venue as the previous have been held ?

LOL - OK that was quite an obvious statement reading it back.

The point I was getting at is that it seems more likely that they are being oppurtunustic and trying to ride the wave when it comes, rather than being major players - considering their size.

With an M Cap of under £700k - they might just about to afford the hob knobs.

I don't know much about JHI or Westmount Energy Limited but I wonder if they are taking stakes in the FI in the hope that they might be more valuable down the line when the oil there is being produced.

O I L - what else is he going to say other than "intends to"?

RKH had to release the annulment outcome as soon as they had notice of it. At this point in time they obviously wouldn't have had time to claim on the insurance, so they are correct to say that they "intend to" claim on it. I think you are trying to find a meaning in the wording that isn't there.